Bitcoin has failed to break through resistance, whereas BNB is gaining ground

Market Overview

The crypto market has returned to the region of local lows, with a market capitalisation of $2.67T. Cryptocurrencies failed to mount a rally as stock indices resumed their downward trend, with markets pricing in a slightly higher probability of interest rate rises over the coming year and growing concerns about corporate earnings following a 10% slump in Alphabet shares. The decline in altcoins over the past day was widespread. BNB (+0.6%), Tron (+0.02%) and Litecoin (−0.7%) outperformed the market, while the three worst-performing coins were Basic Attention Token (−9.5%), Near Protocol (−8.3%) and Dash (−7.4%).

On Wednesday, Bitcoin encountered resistance at its 50-day moving average, reversing lower from the $81.7K region and retreating to $79.9K at the time of writing. This marks yet another test of support within the very narrow trading range in which BTC has found itself. Given the close correlation between cryptocurrencies and the Nasdaq-100, the greatest risk today is a decline in the price of the leading cryptocurrency toward $75K, as the bears have demonstrated their strength in curbing the uptrend.

BNB is under less pressure than its peers, having gained over the past four days and been on an upward trend since 19 October. On Wednesday, the coin managed to close above its 50-day moving average, although Thursday’s pullback from local highs is once again testing the strength of this medium-term trend indicator. Throughout the second half of the month, BNBUSD has outperformed Bitcoin, although both are more than 6% below their peak at the start of the month.

News Background

Regulatory uncertainty in the US could hinder the transfer of significant volumes of assets to the blockchain, according to Robinhood. Additional regulations or legislative changes are required to attract large-scale investment.

Investment firm VanEck has launched an exchange-traded fund (ETF) that combines shares, bonds and cryptocurrencies in a single ETF. The target allocation for Bitcoin is 2% of the portfolio, with a range of 1–5%.

Moody’s has assigned Ripple’s dollar-pegged stablecoin, RLUSD, a long-term deposit rating of A2 and a short-term rating of P-1 — the highest on the relevant scale. The assessment considered the quality and liquidity of the reserves, as well as the token redemption mechanisms.

The Securitize platform has announced the integration of the Stellar network into its infrastructure to issue and manage tokenised assets. The company already supports the Ethereum, Solana and Avalanche blockchains.

According to CryptoQuant, the altcoin inflow index on Binance has fallen to its lowest level since 20 August. Depositing coins onto an exchange often precedes a sale, so such a decline is usually seen as a sign of easing selling pressure.

The FxPro Analyst Team